Mayer-Perri v. Fay Servicing, LLC

CourtDistrict Court, M.D. Pennsylvania
DecidedJuly 22, 2025
Docket3:24-cv-01159
StatusUnknown

This text of Mayer-Perri v. Fay Servicing, LLC (Mayer-Perri v. Fay Servicing, LLC) is published on Counsel Stack Legal Research, covering District Court, M.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mayer-Perri v. Fay Servicing, LLC, (M.D. Pa. 2025).

Opinion

UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF PENNSYLVANIA JOANNE MAYER-PERRI,

Plaintiff, CIVIL ACTION NO. 3:24-CV-01159 v. (MEHALCHICK, J.) FAY SERVICING, LLC,

Defendant. MEMORANDUM Presently before the Court is Defendant Fay Servicing LLC’s (“Fay”) motion to dismiss for failure to state a claim. (Doc. 11). On July 15, 2024, Plaintiff Joanne Mayer-Perri (“Mayer-Perri”) initiated this action on behalf of herself and all others similarly situated by filing a complaint. (Doc. 1). For the following reasons, Fay’s motion to dismiss shall be GRANTED in part and DENIED in part. (Doc. 11). I. BACKGROUND AND PROCEDURAL HISTORY The following background is taken from the complaint and, for the purposes of the instant motion, is taken as true. (Doc. 1). Mayer-Perri is the administratrix of the Estate of Eleanor F. Mayer (“Mayer”), Mayer-Perri’s mother, and through this position, she owns a home in Jessup, Pennsylvania. (Doc. 1, ¶ 12). Prior to Mayer’s death, Mayer-Perri’s parents originally financed this home through a mortgage with a total loan amount of $112,130.56. (Doc. 1, ¶ 26). The pre-interest loan amount was $104,554.90 plus a fee of $7,576.66, which was to be paid in 300 monthly payments (25 years) at an interest rate of 11.203%. (Doc. 1, ¶ 26). Under the original mortgage agreement, the lender, Household Finance Consumer Discount Company, was not permitted to levy fees associated with inspections against the borrower, Mayer-Perri’s parents, or inspect the property in the event of default without first sending written notice. (Doc. 1, ¶¶ 26-27). On September 1, 2009, Mayer-Perri’s father passed away, leaving Mayer responsible for the mortgage. (Doc. 1, ¶ 28). In late 2016, Mayer received a discharge of debt in a Chapter 13 bankruptcy proceeding, but the mortgage remained valid because the security interest

survived the bankruptcy discharge. (Doc. 1, ¶ 29). After the bankruptcy, Mayer and Mayer- Perri, acting through power of attorney, entered a loan modification agreement with Caliber Home Loans (“Caliber”). (Doc. 1, ¶¶ 29-32). This agreement set the unpaid principal balance at $88,503.45 for Mayer to repay over 39 years at an interest rate of 1.375%. (Doc. 1, ¶ 31). The modified agreement also included a deferred amount of $66,830.56 for Mayer to pay in full by the loan’s maturity date of December 28, 2056. (Doc. 1, ¶ 31). The modified loan agreement did not contain any language regarding the right of the lender to perform property inspections or charge fees for inspections. (Doc. 1, ¶ 32). Instead, the agreement stated, “under the terms of this Agreement or the Security Instrument, Servicer may exercise its rights against the Property, in accordance with the terms set forth in the [original] security Instrument.”

(Doc. 1, ¶ 32). Mayer died on November 19, 2017, and Mayer-Perri took legal possession of the home subject to the loan modification agreement. (Doc. 1, ¶ 33). Mayer-Perri resides in the home. (Doc. 1, ¶ 33). In February 2021, Mayer-Perri became delinquent on her mortgage, and Caliber transferred the mortgage servicer responsibility to Fay. (Doc. 1, ¶ 34). Between April 12, 2021, and February 12, 2024, Fay inspected the home 32 times without notice and charged inspection fees which appeared on mortgage statements sent to Mayer-Perri. (Doc. 1, ¶ 35-38). On July 15, 2024, Mayer-Perri brought this action on behalf of herself, a national class, and a Pennsylvania sub-class. (Doc. 1). The national class is made up of “[a]ll individuals in the United States who were charged property inspection fees by [Fay] whose form mortgage agreements do not permit inspections or the levying of fees without proper notice.” (Doc. 1, ¶ 52). The Pennsylvania sub-class is made up of “[a]ll residents of the Commonwealth of Pennsylvania who were charged property inspection fees by [Fay] whose form mortgage

agreements do not permit inspections of the levying of fees without proper notice.” (Doc. 1, ¶ 52). Mayer-Perri raises four counts against Fay. (Doc. 1, ¶¶ 60-83). Mayer-Perri brings Count I on behalf of herself and the nationwide class alleging Fay violated § 1692e and § 1692f of the Fair Debt Collection Practices Act (“FDCPA”) by charging inspection fees without following procedures set by the underlying mortgage documents or without regard for circumstances. (Doc. 1, ¶¶ 60-67). Mayer-Perri brings Count II on behalf of herself and the national class, alleging Fay is liable for breach of conduct because Fay inspected properties and levied inspection fees without complying with the underlying mortgage agreements. (Doc. 1, ¶¶ 68-71). Mayer-Perri brings Count III on behalf of herself and the Pennsylvania sub-class alleging Fay violated § 2270.4(a) of the Pennsylvania Fair Credit Extension

Uniformity Act (“FCEUA”) by charging inspection fees without following procedures set by the underlying mortgage documents or without regard for circumstances. (Doc. 1, ¶¶ 72-79). Finally, Mayer-Perri brings Count IV on behalf of herself and the Pennsylvania sub-class alleging Fay is liable for unjust enrichment for charging unauthorized inspection fees. (Doc. 1, ¶¶ 80-83). On September 23, 2024, Fay filed a motion to dismiss along with a brief in support. (Doc. 11; Doc. 12). On October 3, 2024, Mayer-Perri filed a brief in opposition. (Doc. 17). On October 17, 2024, Fay filed a reply brief. (Doc. 18). Accordingly, the motion to dismiss has been fully briefed and is ripe for disposition. II. LEGAL STANDARDS Rule 12(b)(6) of the Federal Rules of Civil Procedure authorizes a defendant to move to dismiss for “failure to state a claim upon which relief can be granted.” Fed. R. Civ. P. 12(b)(6). To assess the sufficiency of a complaint on a Rule 12(b)(6) motion, a court must first

take note of the elements a plaintiff must plead to state a claim, then identify mere conclusions that are not entitled to the assumption of truth, and finally determine whether the complaint’s factual allegations, taken as true, could plausibly satisfy the elements of the legal claim. Burtch v. Milberg Factors, Inc., 662 F.3d 212, 221 (3d Cir. 2011). In deciding a Rule 12(b)(6) motion, the court may consider the facts alleged on the face of the complaint, as well as “documents incorporated into the complaint by reference, and matters of which a court may take judicial notice.” Tellabs, Inc. v. Makor Issues & Rights, Ltd., 551 U.S. 308, 322 (2007). After recognizing the required elements that make up the legal claim, a court should “begin by identifying pleadings that, because they are no more than conclusions, are not

entitled to the assumption of truth.” Ashcroft v. Iqbal, 556 U.S. 662, 679 (2009). The plaintiff must provide some factual ground for relief, which “requires more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do.” Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 555 (2007). “[T]hreadbare recitals of the elements of a cause of action, supported by mere conclusory statements, do not suffice.” Iqbal, 556 U.S. at 678. Thus, courts “need not credit a complaint’s ‘bald assertions’ or ‘legal conclusions’. . . ” Morse v. Lower Merion Sch. Dist., 132 F.3d 902, 906 (3d Cir. 1997) (quoting In re Burlington Coat Factory Sec. Litig., 114 F.3d 1410

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Mayer-Perri v. Fay Servicing, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mayer-perri-v-fay-servicing-llc-pamd-2025.